Analyzing Spectral AI (NASDAQ:MDAI) & InspireMD (NYSE:NSPR)

InspireMD (NYSE:NSPR) and Spectral AI (NASDAQ:MDAI) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Insider and Institutional Ownership

44.8% of InspireMD shares are owned by institutional investors. Comparatively, 67.1% of Spectral AI shares are owned by institutional investors. 29.7% of InspireMD shares are owned by company insiders. Comparatively, 56.7% of Spectral AI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares InspireMD and Spectral AI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InspireMD	$6.20 million	12.24	-$19.92 million	($0.75)	-3.88
Spectral AI	$18.06 million	2.23	-$20.85 million	($0.65)	-3.33

InspireMD has higher earnings, but lower revenue than Spectral AI. InspireMD is trading at a lower price-to-earnings ratio than Spectral AI, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for InspireMD and Spectral AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InspireMD	0	0	2	0	3.00
Spectral AI	0	0	2	1	3.33

InspireMD presently has a consensus target price of $4.75, suggesting a potential upside of 63.23%. Spectral AI has a consensus target price of $4.75, suggesting a potential upside of 119.40%. Given Spectral AI’s stronger consensus rating and higher probable upside, analysts clearly believe Spectral AI is more favorable than InspireMD.

Profitability

This table compares InspireMD and Spectral AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InspireMD	-413.96%	-69.42%	-57.68%
Spectral AI	-40.78%	N/A	-77.87%

Risk & Volatility

InspireMD has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Spectral AI has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Summary

Spectral AI beats InspireMD on 10 of the 14 factors compared between the two stocks.

About InspireMD

InspireMD, Inc., a medical device company, focuses on the development and commercialization of MicroNet stent platform technology for the treatment of vascular and coronary diseases in Europe, Latin America, the Middle East, and Asia Pacific. The company offers CGuard carotid embolic prevention system (EPS) for use in carotid artery applications; CGuard Prime Stent System, a mesh-covered self-expanding carotid stent; and SwitchGuard NPS, a non-invasive transcarotid artery revascularization device; as well as treating acute stroke with tandem lesions. InspireMD, Inc. has a strategic agreement with Jacobs Institute to execute an early feasibility study of CGuard Prime for the treatment of acute stroke patients with tandem lesions. The company sells its products through local distribution partners. InspireMD, Inc. was founded in 2005 and is headquartered in Tel Aviv-Yafo, Israel.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.